John Adams’ Top 10 Undeniable Truths about Real Estate for the Fall of 2008
1. People have to have a place to live. — It’s basic but it speaks volumes about the real estate profession. Today there are 4.78 million people in the metro Atlanta area; it’s predicted there will be over 8 million by 2025. That’s a lot of people coming in who will need a place to live.
2. Well-selected residential real estate will always go up in value. — According to the most recent report (2nd quarter, 2008) from the Office of Federal Housing Enterprise Oversight (www.OFHEO.gov
for that report. http://www.ofheo.gov/media/pdf/2q08hpi.pdf
3. All of us face challenges in our lives at one time or another. — A challenging market makes you appreciate the good times. It’s as simple as that.
4. Interest rates go up and interest rates go down, but you can always refinance when the money is cheap. — We are in a temporary situation in which it’s hard to find money for non-owner occupied properties and in which the public’s perception is that interest rates are high. But they will still buy.
5. The greatest expense you will have in your lifetime, without a doubt, is taxes. — The level of taxation we experience in this country is remarkable. Real estate is an investment that allows you to reach financial freedom and reduce your tax burden.
6. The tax benefits of real estate are, indeed, too good to be true. But they are true. — We need to constantly tout to our customers the exclusion from taxation of gain on a primary residence as the number 1 reason to own a home.
7. Inflation is our friend. — Sounds crazy, but controlled inflation can be helpful in growing our economy.
8. You can retire comfortably on as few as 8 – 10 rental houses. — Eight to ten rental properties, paid off, can be a substantial retirement income.
9. Investing in real estate is simple but it’s not easy. — Seek the advice of those who have ‘been there, done that’ but don’t be afraid to jump right in.
10. In the words of John McCain [and this is coming from John Adams, lifelong Democrat!], ‘Our economy is fundamentally sound.’ — We are in a financial crisis, not an ecomonic crisis. Some of the media is comparing our current ecomony to the Depression; however, the unemployment rate during the Depression was over 25%, whereas our current national unemployment rate is
around 6%. Also, compare our GDP to that of the Depression and they are nowhere near the same. We will overcome the current financial crisis and move on with a healthy economy.
There is a lot of uncertainty right now, and the market hates uncertainty. If we can get through the election and put a solid floor beneath us in the real estate and mortgage industries, we can get back to work!